According to the second quarter Mortgage Fraud Index released by MortgageDaily.com, Minnesota’s mortgage fraud index increased 27 percent from the first quarter of this year. MortgageDaily.com bases the index on criminal and civil cases in which defendants are accused of “trying to deceive real estate lenders into making credit decisions using fraudulent documentation or property appraisals with false values.” On a national level, the U.S. index fell more than 25 percent over this time last year, but Oregon, Utah, Iowa and Colorado all showed quarter-over-quarter increases.
The rise in the index in Minnesota equates to an estimated $161 million more in cases in Q2 this year.
Mortgage fraud is a very slippery issue. Do these numbers concern you or do you think that fraud lawsuits may be being filed too quickly and easily?
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